InBev: Willing to Pay the Price

Jun.18.08 | About: Anheuser-Busch Inbev (AHBIF)

InbevInBev (INBVF.PK), the Belgium beer maker, will be willing to raise its offer for Anheuser Busch (NYSE:BUD), according to dealReporter today. InBev is offering USD 46.35bn for Anheuser. Neither companies are the target of short investors at present, with InBev having 2.6% of its Market Cap on Loan (%MCOL) to short sellers, and Anheuser has 0.26%.

InBev paid a dividend yield on April 30th which is reflected in the short interest chart here, but as you can see there has been a general increase in short interest in the past year, from 1% in June 2007 to 2.6% today. In relation to the Market Cap, InBev's Utilisation (or the percentage of the available stock) is high at 28%, so presumably this stock is difficult and expensive to borrow. The Utilisation for the rest of the BEL20 is 17.6%, and for the rest of the EMEA Food, Beverage & Tobacco sector it is 9.1%.

At 8%, Anheuser's Utilisation is higher than the rest of the S&P500's average of 0.59% and the North America Food Beverage & Tobacco sector of 0.59% too.